H1 2020 results
A strong performance during the pandemic; a leader in the fight against COVID-19
During the COVID-19 global pandemic, AstraZeneca's priority was and will continue to be the safe supply of medicines to millions of patients. In the first half, revenue, profit and cash-flow continued to grow. This performance was supported by successful launches of new medicines1 and more encouraging progress from the pipeline. The Company's focus on growth through innovation is designed to support a continuation of these trends.
Pascal Soriot, Chief Executive Officer, commented:
“I want to thank my colleagues around the world for producing a strong performance in the first half of the year, delivering further revenue growth and another step forward in profitability and cash generation. I was particularly pleased with the robust growth in Emerging Markets and the success of our new medicines. We made further progress with our pipeline, highlighted by the overwhelming success of Tagrisso in the ADAURA trial and with Farxiga, which expanded its potential beyond diabetes. We are also pleased with our new collaboration with Daiichi Sankyo on DS-1062, which strengthens our growing Oncology portfolio.
Furthermore, our company has mounted a significant response to COVID-19, with capacity to deliver over two billion doses of AZD1222, the accelerated development of our monoclonal antibodies and new trials for the use of Calquence and Farxiga to treat patients affected by the virus.
Looking ahead, while we continue to anticipate variations in quarterly performance, the continuation of our strategy makes us confident about the future. We are retaining our full-year guidance that is underpinned by the focus on commercial execution and an exciting pipeline of new medicines.”
Financial performance
Table 1: Financial summary
|
|
H1 2020 |
Q2 2020 |
||||
|
$m |
% change |
$m |
% change |
|||
|
Actual |
CER 2 |
Actual |
CER |
|||
|
Total Revenue |
12,629 |
12 |
14 |
6,275 |
8 |
11 |
|
Product Sales |
12,359 |
11 |
13 |
6,048 |
6 |
9 |
|
Collaboration Revenue |
270 |
n/m 3 |
n/m |
227 |
n/m |
n/m |
|
|
|
|
|
|
|
|
|
Reported4 EPS5 |
$1.17 |
n/m |
n/m |
$0.58 |
n/m |
n/m |
|
Core6 EPS |
$2.01 |
24 |
26 |
$0.96 |
32 |
31 |
There was only a modest inventory-related benefit to Total Revenue, reflecting the effects of the ongoing COVID-19 pandemic, in the first half of the year.
Total Revenue increased by 12% (14% at CER) to $12,629m in the half, with growth across all three therapy areas7 and in every region. Highlights of Total Revenue included:
– The performance of the new medicines, which improved by 42% (45% at CER) to $6,353m, including new-medicine growth in Emerging Markets of 71% (79% at CER) to $1,406m. These medicines represented 50% of global Total Revenue (H1 2019: 40%)
– Growth across all therapy areas: Oncology +28% (+31% at CER) to $5,324m, New CVRM8 +8% (+11% at CER) to $2,265m and Respiratory & Immunology +5% (+7% at CER) to $2,676m. In the second quarter, Respiratory & Immunology Total Revenue of $1,122m declined by 11% (8% at CER), reflecting the adverse impact of COVID-19 on sales of Pulmicort in China
– Growth in every region: an increase in Emerging Markets of 9% (15% at CER) to $4,329m, with China growth of 10% (14% at CER) to $2,659m. China increased by 7% in the second quarter (12% at CER) to $1,243m. Total Revenue in the US increased by 13% in the half to $4,177m and in Europe by 17% (20% at CER) to $2,447m
COVID-19
In addition to the array of efforts listed in the prior results announcement, the Company has mobilised research efforts to find new ways to help target the SARS-CoV-2 virus, reduce the cytokine storm9 and limit organ damage; for the latest AstraZeneca communications regarding COVID-19, please click here.
AstraZeneca has prioritised broad and equitable supply of a vaccine throughout the world at no profit during the pandemic, details of which can be found in the sustainability section of this document. In July 2020, results from the ongoing Phase I/II COV001 trial, led by the University of Oxford, were published in The Lancet showing that recombinant adenovirus vaccine AZD1222 (ChAdOx1 nCoV-19) was tolerated and generated robust immune responses against the SARS-CoV-2 virus in evaluated participants. Late-stage trials are currently underway in the UK, Brazil and South Africa and are due to start in the US. These trials will determine how well the vaccine will protect from the COVID-19 disease and measure safety and immune responses in different age ranges, at various doses.
Further details of the Company's broad COVID-19 research and development programme and agreements to establish manufacturing capacity are shown later in this announcement.